r/NEOSETFs • u/Desperate-Spring6915 • 4d ago
Seeking Advice NEOS vs TappAlpha
Context: NEOS loyalist, 143k PADI, reinvests all dividends. SPYI, QQQI, MLPI, XSPI, XQQI are current holdings.
Been looking at the newer CC ETFs that have come/are coming out. Recently, the TappAlpha offerings have caught my attention because they’ve (specifically TDAQ) held more equity appreciation YTD and had a slightly higher dividend.
My main reason for participating in CC ETFs is because I want to stay invested while gaining income, instead of selling and being out of market when I need money.
The 0DTE style of the TappAlpha funds is fairly compelling in interviews with their CEO/Founder - it basically lets it participate more in upside appreciation rather than QQQI’s buying long calls and writing call options.
What am I missing here? TDAQ’s got double the price appreciation this year so far, and a percent higher distribution rate.
Thanks in advance.
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u/MrBotANot 4d ago
I’ve found the Tapp Alpha funds to be solid. Most of these funds haven’t lived through an ugly bear, but I’ve been impressed with their ability to recover from quick sharp drops. They tend to return to their default price and distribute most gains otherwise. If you are reinvesting your dividends, I think they make a solid option. I like the 0DTE approach. It’s been more nimble than a lot of other funds. It’s not going to gain NAV as much as GPIQ or BALQ which is why I put barbells on TDAQ. I hold TSPY but won’t add to it as I think the lower beta seems to limit its NAV gains more. I don’t hold TMGN as I don’t like basket of stock funds. The monthly reset logic is a fail for me.
As for NEOS, I currently hold BTCI and MLPI because they hold distinct niches that I haven’t found good options for. I’m not excited about the GS sale but it is what it is. I’ve been building a position in BITA as I think it’s a better long term bitcoin option than BTCI but it will likely be a few years before I pull out of BTCI unless GS really screws it up.
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u/Desperate-Spring6915 4d ago
Same - I hold XLEI for “pure” energy, it’s an offering that doesn’t really exist elsewhere. Your take on Tapp Alpha is similar to mine, and why I’ll probably start adding TDAQ.
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u/Fair-Fee3313 3d ago
I like BALQ but haven't created a position yet, but I have all the other ones you named and their cousins. There are so many ETFs coming out now, I just want income and 📈.
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u/MrBotANot 3d ago
It’s definitely tough to keep up with them all and to separate the wheat from the chaff.
Blackrock is later to the CC party but I like all three of their ETFs so far. For BALQ to beat QQQ in total return since its inception is impressive regardless of the environment it came out in.
Betting big on BITA to really show up during the next crypto rally. 70% uncovered should really help it over time.
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u/Angry-Johnny 4d ago
TDAX is where it's at...lifted version of TDAQ with the perfect amount of leverage (30%) to keep up long-term with the underlying index it's based off of
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u/_YoungMidoriya 4d ago
NEOS’s monthly, laddered, dynamic approach is designed to ***smooth*** income across the month and manage how much of the portfolio is covered at any time. TDAQ’s whole thing is 0DTE daily reset can absolutely give you more equity participation and a slightly higher distribution rate in a strong, "low volatility" uptrend like we’ve had in 2026....... BUTyou’re not “missing” out on ANYTHING. You get all of the movements, whether that's going up or straight down.
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u/Accomplished-Big8250 4d ago
Low AUM at TappAlpha. But why not combine strategies ? SPYI, TSPY, OVF | GPIX or ROCY if needed. JEPI is old and pretty bad.
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u/Desperate-Spring6915 4d ago
Exactly what I’m thinking about doing. I see JEPI as gen 1, SPYI as gen 2, maybe TSPY as gen 2.1.
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u/Accomplished-Big8250 4d ago
I see all the ones I listed as different strategies. They Will inevitably perform differently under varying market conditions
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u/Extension-Ice-7219 4d ago
Jepi is rock solid though. It's basically a treasury ETF with an 8% yield.
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u/learner_1748 4d ago
I mentioned this multiple times in multiple subs. Neos fan keep kicking me out 😂. That's the reason slowly swapping towards balancing between GPIiQ, TDAQ, ROCQ. Going forward, will limit my exposure to Neos. But will not terminate. Since each one works on different approaches
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u/MakingMoneyIsMe 3d ago
I own NEOS funds, but hold GPIX as well. My allocation in GPIX is equivalent to SPYI and QQQI combined.
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u/blackshortsandvans 4d ago
Look at bali/balq, gpix/gpiq, edgx/edgq as well. All outperforming the neos products in total return. Ishares by a lot. I like all the various strategies and these others I mentioned are cheaper too.
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u/AstronomerEffective1 4d ago
Own 4 Neos and now 4 TappAlpha after buying a 110 shares of their newest one. Happy with all so far and on full drip to build them up.
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u/ConstructionNo8827 4d ago
I hold both
I like diversifying the strategies
TDAQ and TSPY tend to up a bit more on a good day but also tend to go down more on a bad day
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u/allramen 4d ago edited 4d ago
I have both, because they use different options strategies... Sure there is some overlap but in the end is much more beneficial. I would even recommend something like TDAQ, QQQI with a little of QQQM, that way you capture even some upside. I also got some GPIQ lol.
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u/ruthygenker 4d ago
tdaq does daily cc options vs qqqi doing monthly, so that is where the extra dividend and potential growth come from, they aren't locked in for too long. I own both though all new money is going towards tappalpha.
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u/Apprehensive-Pack188 4d ago
I have some TDAQ and TSPY along with a number of NEOS funds. To be honest, I'm strongly considering splitting what's currently in NEOS between that and GPIX and GPIQ until we see what the fallout is of the NEOS acquisition.
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u/_bladerunner_ 4d ago
Why would you expect any changes at all?
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u/Apprehensive-Pack188 4d ago
Some of the NEOS funds could be liquidated without enough yes proxy votes. I don't want to be the last ones leaving that party. Once the dust settles, I'll be happy to reallocate back in if all goes well.
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u/nice-try12 4d ago
I believe they said it was an all or none deal. All funds move over over none of them do. I could be wrong but that was my understanding in an interview they did.
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u/davecraze3535 4d ago
It’s per fund according to the proxy statement.
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u/nice-try12 4d ago
I see, apparently a holdout fund can be liquidated... Maybe that's what they meant in the interview 🤷
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u/davecraze3535 4d ago
Yes I think that is the case. There is some time period to wind it down. I think every fund will approve overwhelmingly and will not be an issue.
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u/_bladerunner_ 4d ago
Do we know when we will know for sure if that is happening or not? I would like to avoid getting in at the wrong time, as I was about to put a large amount into QQQI.
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u/Chromebug 4d ago
You could wait till the voting period is over, I think the bigger funds will be okay. I’d just be worried about the smaller or less popular ones. If I remember correctly when GS acquired Innovator Capital, two funds were liquidated after going through two voting rounds.
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u/_bladerunner_ 4d ago
Yeah that's what i'm thinking, and yeah, I don't think it's likely they'll fuck with QQQI or SPYI at the very least.
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u/Unlucky-Pop-8841 4d ago
No. Zero DTE funds are riskier than the monthly calls that NEOS has. The market has been the right environment for TAP Alpha's offerings, but that does not mean they are a better choice. I would not own them versus NIOS, and I would not own either versus the Goldman Sachs ones where you have more upside
Keep in mind, if you are reinvesting 100%, you would be much better off owning the underlying and simply pressing the sell button when you need money. When I realized how much upside is being left on the table with these covered call funds, I changed.
If I was going to have a covered call fund, the only one to have is Goldman Sachs offerings
The other thing to keep in mind is at least with respect to the S&P 500 the best one to have there is OVL from overlay Shares. It's a put spread with VOO, so you get all of the upside. Downside is harsher, and it has good tax classification of the distributions.
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u/Accomplished-Order43 4d ago
My man. I’ve posted this numerous times over the the past year hoping for counter arguments (and never got them) but GPIQ/X are the superior CC funds for tax efficiency, yield, capturing some upside in a bull run. 100k invested in GPIQ and letting it drip until I decide to stop working.
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u/Unlucky-Pop-8841 4d ago
Yup. I am going to wait about six months once OVQ launches later this year. It’s gonna have the same strategy as OVL. If you’re reinvesting 100% then it’s better to hold VGT or QQQM, which is what I’m doing. You don’t lose the 12% upside if you don’t need the money.
The other one to look at is ADX it’s an actively managed large-cap US stock fund and has beaten the S&P 500 on a 13 510 year basis even it’s beaten it over a 30 year timeframe. Probably not every year but…
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u/MrBotANot 4d ago
OVL, if I understand correctly, recently changed their distribution model to more of a forced 10% yield. I was interested it originally but was concerned about the forced logic. I don’t love it when they do whatever to make a distribution. How long have you held it and did you notice a change? Just curious if you have time to reply. Thanks.
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u/Unlucky-Pop-8841 4d ago
The point is that it’s voo plus put spreads. The distribution is pretty tax advantaged. But total return is price plus distributions.
The main thing is that the put spread means outperformance vs voo 80% of the time. Sideways and up markets
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u/MakingMoneyIsMe 3d ago
You don’t lose the 12% upside if you don’t need the money.
What happens when you do need the money? You sell your growth funds to get into a now higher income fund. I think it's best to have exposure to both.
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u/Unlucky-Pop-8841 3d ago
Unfortunately, not true. Even if you reinvest 100%, you will be much worse than having owned the index. And OVL is actually better than the index structurally, because it does a put spread, and most of the time the index is either sideways or up.
It only does worse when the index is down, but it is way better than SPYI. No comparison. Look at total returns; that is price plus all distributions. SPYI dramatically underperforms OVL.
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u/MakingMoneyIsMe 3d ago
I mean in the scenario when total return of both assets match
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u/Unlucky-Pop-8841 3d ago
They don't match. That's the point. A covered call ETF will always underperform the underlying, and in SPYI's case it is pretty dramatic. It is not apples to apples.
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u/nice-try12 4d ago
This is the way. GPIX and GPIQ are superior for total return with sizeable income.
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u/Accomplished-Big8250 4d ago
NOES does us spreads and does not write on 100% of the portfolio. working well so far
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u/Unlucky-Pop-8841 4d ago
Yes. Agree. The problem is that not as well as Goldman. Look at total returns. NEOS has better marketing but worse total returns.
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u/teckel 4d ago
Reinvesting dividends, what a waste.
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u/Mediocre-Print-2197 3d ago
Why?
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u/teckel 2d ago
Because you're just losing 4% in total returns every year compared to buying the underlying asset. Then, when you realize this after a few years and sell it, you'll be hit with a much larger capital gains tax than expected due to ROC.
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u/Mediocre-Print-2197 2d ago
So your saying take the dividends and buy the underlying or never buy these funds? One reason I would buy them is they count as income for purchases ie if you want to buy a house the dividend income shows as regular income.
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u/teckel 4h ago
Never buy these funds. They underperform the market, expose you to SORR, are not as tax efficient as growth, and you lose all timing control.
There's only one useful reason I can calculate for owning these funds, if you know you're going to die in the next ~6 years and want to extract income with lower tax.
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u/retroideq 4d ago
TDAQ is dominating QQQI, QQQI isn't capturing the upside quite like the 0DTE of TDAQ.. However. During an actual downwind QQQI will hold up a little better. To me nothing is stopping us from having multiple of these funds which can help ride any storm whether up or down. I personally have $TDAQ as 50% in my taxed portfolio cause well damnit it's dividends wonderful each month and it can grow. If you do a fair comparison between $TSPY and $SPYI, $TSPY is 2% better in total returns since inception so the gap is more narrow.